Durango Gravel

Gravel Rock Products Business Plan

Executive Summary

Durango Gravel, Inc. produces and sells types and grades of gravel to public and private customers in the Four Corners Region, concentrating on the area around Durango, Colorado. In just five months of operation, we operated at a profit, recording $250,000 in sales and selling almost 49,000 tons of gravel products.

Our goal for this year is to penetrate the asphalt market, with its high profitability and limited competition. By adding an asphalt plant, and meeting our minimum goals of 45,500 tons of asphalt, we plan to sell over 191,000 tons of gravel products to municipalities, contractors and end-users, with sales of over $2,696,000 and net profits of $854,000.

We have experienced significant success penetrating the local market by offering superior products and customer service.

Our keys to continued success are:

Expanding into the asphalt market.

Establishing and maintaining working relationships with major institutional users.

Exploiting the coming void in gravel supplies to establish a market niche.

Developing a net profit margin above 30%.

Effectively communicating to our existing and potential customers, through targeted efforts, our position as a differentiated provider of the highest-quality gravel and asphalt products.

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1.2 Mission

Our principals have a history of valuing relationships with their customers. We communicate our commitment to quality and customer appreciation through outstanding product quality, personal service and efficient delivery. Our commitment to our customers is reflected through honest and responsible business practices.

1.3 Keys to Success

The keys to success for Durango Gravel, Inc.:

Establishing and maintaining working relationships and contractual agreements with municipality and business sector clients.

Increasing our facility to maximum production within the next three years.

Continuing our position as a customer-service-oriented company with competitive pricing.